Retailers wary of Facebook’s power
Dependency on Facebook is retailers' biggest worry. The flip side is that the platform shifts goods where others fail to deliver (Digiday).
- Facebook works, particularly for older customers (boomers)
- But customer acquisition costs highly unpredictable
- New Instagram in-app shopping function could solve lack of conversion, but retailers wary of handing over conversions
- Pinterest needs to up conversion to justify spend; execs keener on TV and out of home
- Direct-to-consumer brands diversifying channel mix
- "Control is being taken away as platforms flex their muscles – we're seeing less control over our target audience, meaning it's becoming increasingly harder to reach a core audience. At the same time, CPMs and costs are rising." - Retailer
Facebook's effectiveness for retailers hunting baby boomers poses a major dilemma – and not just to retailers. Brands are at the mercy of walled garden keepers – who have built higher walls since GDPR regulations kicked in. All marketers are grappling with the same paradox, as are publishers. They need Facebook's unparalleled reach, yet the more data and process they hand over, the greater their exposure to risk, and the more powerful the platforms become. Unwinding the marketing plans that created this vicious circle is no mean feat, even for those with the stomach to wrest back control. But that's part of what Publicis hopes to convince brands it can deliver with its acquisition of Epsilon – if it can scale the U.S. focused customer experience management platform globally.
Implicit in the statement that Facebook works particularly well for the middle aged and elderly is its reduced efficacy for younger shoppers. As Facebook skews older, that poses an audience challenge for marketers – and an opportunity for channels that can better drive the under 55s into digital and physical stores.
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‘The great Aussie SMB reset’: The opportunity for marketers in a massive boom for small and medium businesses
Val Morgan is working with Karen Nelson-Field’s team at Amplified Intelligence to study the effect of attention metrics on cinema audiences. As James Bond’s latest film storms the global box office, it’s time for more meaningful metrics – and cinema is in a class of its own on the attention scale, Val Morgan’s Guy Burbidge writes.
The advertising industry deserves a collective round of applause. In the face of a global pandemic, near constant – and ongoing – privacy questions and scrutiny, advertisers innovated and experimented like never before, and the whole market is better for it. Success in the next (hopefully disruption-free) year will require collaboration and partnerships.